Says the reason for retrenchments is to respond to evolving market demands.
Ford in South Africa plans to cut at least 470 jobs at its Pretoria and Eastern Cape plants, dealing another blow to the country’s automotive industry.
This comes at a time when the industry is seeking ways to mitigate the impact of 25% US tariffs on vehicle imports. However, Ford is not affected by US President Donald Trump’s decision on tariffs, as it exports almost nothing to the US.
In a country where unemployment remains a pressing concern, news of further job losses raises serious questions about South Africa’s economic future. Given the current economic climate, businesses can do little to create or retain jobs if they are struggling to remain financially viable.
Ford’s 470 employees to be retrenched
Ford said the reason behind the retrenchments is to respond to evolving market demands.
Trade union Solidarity has expressed concern over Ford’s decision to retrench workers, as it believes many car manufacturers might follow suit in the near future.
Those affected by the retrenchments are 391 workers at the Silverton assembly plant in Pretoria, 73 workers at the Struandale engine plant in Gqeberha and a further 10 administrative staff.
Ford invested more than R16 billion at the Silverton assembly plant in 2022 to build its latest Ranger model there.
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Warning by Ford
“When an automotive giant like Ford takes such drastic steps, it is a warning to the entire industry. We fear that further retrenchments in this industry may be inevitable if conditions do not improve quickly,” said Willie Venter, Solidarity deputy general secretary.
“We will explore every possible alternative to limit job losses and we will ensure that Ford not only fulfils its duty, but that employees are treated fairly.”
Ford said it was consulting with trade unions regarding the retrenchments.
Jobs lost in the industry
Goodyear tyres closed its Eastern Cape manufacturing plant in June, resulting in 900 employees being retrenched.
“As the region, we are deeply worried about the impact on workers and their families. It is becoming a ghost town given that ContiTech, which is part of Continental, closed down — another company in the tyre and rubber industry,” said the National Union of Metalworkers of South Africa (Numsa) of the Eastern Cape.
Mercedes-Benz South Africa recently opened its Eastern Cape production plant after halting production for weeks.
Mercedes-Benz said the 25% tariff on imported cars announced by the US played no role in the company’s decision to halt production. This was just standard procedure.
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